In order to attract foreign investment in the country, it is necessary to develop logistics infrastructure. Logistics is an important part of the infrastructure for the private sector. In this case, joint development of public and private sectors is required for proper development. The speakers made the remarks at a meeting of the Logistics Infrastructure Development Working Committee (LIDWC).
The second meeting of the LIDWC, a joint venture between the Prime Minister’s Office and Business Initiative Leading Development (BUILD), was held on Saturday (13 November). It was jointly chaired by the Secretary to the Prime Minister’s Office Md. Tofazzal Hossain Miah and BUILD Chairperson Abul Kasem Khan. Also present on the occasion were Director General of the Prime Minister’s Office-1 Zobaida Nasreen, Director-1 of the Prime Minister’s Office Anisur Rahman, senior private sector expert of International Finance Corporation Mohammad Lutfullah, and representatives of 16 public and private sectors.
Tofazzal Hossain Miah said the most important thing for the private sector is the logistics infrastructure. At present, the country’s logistics costs are higher than many other countries. It is important to advocate for logistics in a joint venture between the public and private sectors. We need to increase investment in the logistics sector to attract foreign investment.
Abul Kasem Khan said developing countries are investing 9-10% of their GDP in improving the logistics sector. To solve the major problems of the logistics system of Bangladesh, structural reforms have to be made. He also demanded that the infrastructure sector be declared as a dominant sector as well as a potential sector.
DCCI President Rizwan Rahman emphasized the need for specific solutions to the problems of the logistics sector, including the inclusion of logistics as a sector in industrial policy; different incentives to ensure decentralization of industrialization; privatization of airports, seaports, and railways; consideration of special procurement act in preparation of the industrial policy.
CCCI President Mahbubul Alam said, “We need to pay more attention to water connectivity to reduce over-reliance on roads. After water connectivity, more priority should be given to railways. The road needs to be converted into eight lanes to reduce traffic congestion on the Dhaka-Chattogram highway.”
Capt. Kamrul Islam Majumder, Director, Bangladesh Inland Container Depot Association (BICDA), said, “If we want to reduce logistics costs, we need to reduce the cost of container handling at our port. Since the private off-dock is self-sufficient enough, the handling of imported goods can be handed over to the off-dock. ICDs and private off-docks need to be given investment incentives.
Tatiana Peralta Quiros, a senior transport expert at the World Bank’s South Asia Transport Division, said there was no substitute to improving trade competitiveness, export growth, and the investment environment for improving the logistics situation. Preparation of national integrated logistics masterplan, reduction in the time needed for port cargo handling, and proper management of highways will increase the country’s exports by 19%.
Amchem President Syed Ershad Ahmed also emphasized green logistics while reducing logistics costs. According to him, 98% of the country’s freight forwarders are not technically self-sufficient, and this issue needs to be emphasized.
